In this Issue:
- Timely and Accurate Employer Reporting
- TSERS, ORP, CJRS, and LRS Employer Contribution Rates
- LGERS Contribution Rates
- Many Employee Bonuses NOT “Compensation” for TSERS
- One-Time Supplement for TSERS, CJRS, and LRS
- LEO Members Need to Name/Update Beneficiaries
- Cashing In on Financial Literacy
- Essential Guidelines for Filing Form 6
- Member and Employer Events
State Health Plan 2027 Open Enrollment Training for HBRs
State law requires submission of contributions and payroll reporting on or before the fifth business day of the month in order to be considered complete and avoid a penalty.
Both contributions and payroll reporting must be submitted by the employer on or before the fifth business day of the month in order to be considered complete and avoid a penalty. Employee and employer contributions and payroll reporting are not considered submitted until the Retirement Systems Division receives all required information.
The schedule for Contribution Summary Instructions (CSI) Contributions through 2026 is posted on myNCRetirement.gov.
Timely Reporting and Invoice Payments
To maintain correct information, it is important to take time to correct errors in ORBIT. Please respond to your Employer Reporting Team representative promptly so that any issues can be addressed and necessary adjustments can be processed as soon as possible.
Session Law 2026-41 (“Current Operations Appropriations Act of 2026”) was enacted on July 7, 2026. Retirement Systems staff will compile a memorandum detailing the effects of this and other 2026 legislation on Retirement Systems operations. Meanwhile, here are some important headlines for employers relating to the new budget law.
TSERS, ORP, CJRS, and LRS Employer Contribution Rates
Beginning with employee service rendered on or after July 1, 2026, (required to be submitted by early August 2026), employer contribution rates will be as specified in Section 41.25.(a) of Session Law 2026-41 unless further adjusted by the legislature.
| Teachers and State Employees | State LEOs | ORPs | CJRS | LRS | |
|---|---|---|---|---|---|
| Retirement | 18.22% | 18.22% | 6.84% | 42.11% | 19.40% |
| Disability | 0.06% | 0.06% | 0.06% | 0.00% | 0.00% |
| Death | 0.13% | 0.13% | 0.00% | 0.00% | 0.00% |
| Health | 7.69% | 7.69% | 7.69% | 7.69% | 7.69% |
| NC 401(k) | 0.00% | 5.00% | 0.00% | 0.00% | 0.00% |
| Total Contribution Rate | 26.10% | 31.10% | 14.59% | 49.80% | 27.09% |
To help make this information more easily accessible, we have created a public web page where you can find current and past TSERS contribution rates. The rates are also linked here and here.
LGERS Contribution Rates
The rates are posted publicly rather than mailing individual letters to every employer. That approach improves efficiency and transparency, and reduces costs. The table is ordered by five-digit employer codes but is also searchable (by employer name) within a browser, or by downloading the PDF and using “Edit”->”Find” in Adobe.
If you have questions about this information after reviewing the document, you may contact Employer Reporting at (919) 814-9816.
As stated at the link, the rates do not include contributions toward State Health Plan (SHP) coverage, if applicable. Now that S.L. 2026-41 has been enacted, here is what local governments can expect regarding contributions toward SHP coverage:
- For the eleven (11) LGERS employers whose employees are eligible for both active and retiree coverage through the SHP, the employer contribution rate collected by LGERS will be increased by 7.69% of compensation to provide for that coverage.
- For the more than 100 LGERS employers whose employees are eligible for active but not retiree coverage through the SHP, the SHP (not LGERS) will collect the 2.40% of compensation toward the Public Employee Health Benefit Fund as stated in Section 41.25.(a) of S.L. 2026-41.
Many Employee Bonuses in the Budget Law, Including the “$1,750 or $1,000 Bonus” for Most State Employees, Are NOT “Compensation” for TSERS Purposes
Section 41.2.(a) provides for a “State-Funded Employee Bonus” of $1,750 for employees whose annual salaries are $65,000 or less, and $1,000 for employees whose annual salaries are more than $65,000. However, Section 41.2.(b) provides that these bonuses are “not compensation for the purposes of any retirement system administered by the State.” Therefore, they should not be included in the compensation reported to the Retirement System, and no employee or employer contributions (as a percentage of the bonus amounts) should be paid to the Retirement System.
Many other bonuses provided by the budget law contain similar language stating that they are not to be included as compensation for Retirement System purposes, including the performance funding bonuses for the community college system (Section 6.11), bonuses for teachers and assistant principals (Section 7A.2), consolidated teacher bonus program (Section 7A.4), bonuses for principals (Section 7A.8), principal recruitment and retention supplement (Section 7A.9), bonuses for school nutrition and custodial personnel (Section 7A.13), bonuses for members of the N.C. National Guard (Section 19.19), and local law enforcement bonus (Section 41.3).
One-Time Supplement for TSERS, CJRS (Judicial), and LRS (Legislative)
Section 41.26 of S.L. 2026-41 provides for a one-time payment “as close as practicable to October 15, 2026,” to TSERS, CJRS, and LRS payees of record who are living on September 1, 2026, and receiving benefits in connection with a retirement that commenced on or before September 1, 2026. The payment will be equal to 2.5% of the annual retirement allowance. For most payees, we anticipate including these payments as part of the regular October 2026 retirement payroll (a one-time addition to the monthly payment).
For example, if a retiree is receiving $2,500 per month ($30,000 per year) before deductions such as for taxes, the one-time supplement would be $750, which is 2.5% of $30,000. The payment before deductions would be $2,500 in September, $3,250 in October, and $2,500 in November and thereafter.
Employers: Encourage LEO Members to Name/Update Beneficiaries
The Retirement Systems Division offers a death benefit to law enforcement officers through a separate insurance benefits plan. If your death occurs while you are in active service:
- $5,000 is paid to your surviving spouse unless you designate a different beneficiary. The amount is increased by $2,100 if your death is line-of-duty related.
If your death occurs after you are retired from active service:
- $4,000 is paid to your surviving spouse unless you designated a different beneficiary.
Many LEOs have never named beneficiaries. Some named a beneficiary at the beginning of their career but never updated thereafter as circumstances changed. Due to the importance of having the current information on file to ensure the benefit is paid to the correct individual(s), we encourage employers to direct their LEO members to ORBIT Self Service to designate their beneficiaries. Once new employees have been enrolled into ORBIT, and after an employer reporting submission (usually within two pay cycles), the LEO member can go into ORBIT and designate beneficiaries.
Cashing In on Financial Literacy
The Department of State Treasurer has a new opportunity for teenagers around the state, so all you parents, grandparents, siblings and mentors of teens -- we could use your help. We are launching Cash Clubs in all high schools and outside-of-school organizations that would like to host one. We encourage you to make sure your schools know about it. State Treasurer Brad Briner has made financial literacy a hallmark of his tenure, and the next step is now bringing it directly to your kids.
Ask if a school has signed up to create one of the inaugural Cash Clubs. This new financial literacy initiative is meant to help supplement financial literacy efforts being taught at the high school level. The good news? These clubs are one-stop shops, receiving a complete, ready-to-use toolkit each month. A downloadable PDF includes: topics, discussion points, activities, and even quizzes and suggested speakers, all inspired by the award-winning Finance Fridays newsletter.
It’s time to make some money moves with the inaugural Cash Club. Schools can sign up or learn more by emailing: FinanceFridays@nctreasurer.gov.
Stay in Top Form. Essential Guidelines for Filing Form 6
Do you have an employee planning to retire? An application may not be submitted more than 120 days before the effective retirement date. When applying through the secure ORBIT online portal, a member will need to complete “Form 6, Claiming Your Monthly Retirement Benefit.” The member can add or update an email address or other information at the same time. There are some important guidelines to remember when filing the Form 6 document:
- Electronic signatures by members are not acceptable on the Form 6.
- Digital signatures from employers on Form 6 or 6C will be accepted. The signature must be an Adobe Digital ID bearing the time and date stamp. Digital fonts will not be accepted.
A Wait-Reduction Plan that Works: Send Via e-mail, not Fax
Employers should be aware that sending forms or other documents to our office via fax could result in processing delays. To avoid that potential wait time, employers should email the forms or other documents to MemberRecords@NCRetirement.gov for faster responses. They can also send their forms or other documents by USPS mail to 3200 Atlantic Avenue, Raleigh, NC, 27604. Employees also can send their forms or other documents to the same email link or postal address.
Discover upcoming Retirement Systems webinars and events. Registration is required.
State Health Plan 2027 Open Enrollment Webinar Training
October 12-30, 2026
The State Health Plan hosted several Open Enrollment training webinars in July for HBRs to better prepare for the upcoming changes in 2027. If you missed them, you can catch up by visiting the Plan’s HBR Training webpage to view the presentation and listen to a recorded version of the webinar.
